THE US Dollar Thread (merged)

[shakespear1]

May I recommend reading this to get a grip on the issues of the dollar

What (Really) Happened in 1995?
How the Greenspan Fed Screwed Up in the Mid-90s and set the stage for the Greatest Financial Bubble in the History of the World.
by Aaron Krowne
A Sleeper Year--1995 was, by any reasonable accounting, an unremarkable year. Can anyone remember anything significant that happened in 1995? I sure can't.

1995

A good discussion is found here from which I found the above mentioned article.
Discussion

[Ferretlover]

Graph (large)
Helps explain the recent dollar bounce.

[seldom_seen]

Something weird is going on out there. Jim Puplava thinks there's been a massive stealth intervention by the world's central banks in the past few months.

[mkwin]

Or a credit crunch?

[r101958]

Credit crunch?.....certainly......Central Bank intervention......absolutely!......check out shadowstats.com if you want details.

[outcast]

Then again it also dropped off sharply (although not by this much) in July '07, which was right before the subprime bubble burst. Maybe we're going to see something even bigger come falling down......

[idiom]

M3 is the total supply.

Possibly money creation is sill steep, but money destruction has caught up as wealth disappears of books slightly faster than the press is rolling.

[Falconoffury]

The speed at which inflation is occurring is slowing, but it's still way too high.

[mattduke]

As we all know, the bust occurs when the rate of money supply inflation slows. As outlined in Rothbard's "America's Great Depression", the Fed and banking system stopped accelerating the dollar creation rate a few months before the great crash of 1929. Well, we have seen the dollar supply creation rate take a pause this year, and now we get the crash. However unlike 1929, we are now seeing a resumption in the dollar supply growth rate. The money pumping has resumed and it is now near 21% annualized. So the question for the Austrian economists out there is, does the renewed dollar supply growth spell the end of the crunch and postponement of the ultimate bust?